X
At 30 June 2009, the AGL Board comprised eight, independent non-executive Directors (including the Chairman of the Board), and one executive Director who is the Managing Director and CEO of AGL. Detailed information about the structure, responsibility and experience of the AGL Board is included in AGL’s Annual Report.
The AGL Board considers that best-practice corporate governance standards support sustainable performance by AGL over time. AGL’s structures and processes are consistent with the ASX Corporate Governance Council’s, ‘Corporate Governance Principles and Recommendations - 2nd Edition' issued in August 2007, and AGL’s Annual Report includes a full statement disclosing the extent to which we have adopted and meet these recommendations.
The Board has established three standing committees of its members: the Audit and Risk Management Committee; the People and Performance Committee; and the Safety, Sustainability and Corporate Responsibility Committee. These committees meet regularly to oversee key risks affecting our business.
The Safety, Sustainability and Corporate Responsibility Committee operates under a formal Charter, which requires it to oversee promotion across AGL of the principles of safety, sustainability and corporate responsibility as the foundations of good management and good business. The Committee meets on a quarterly basis and oversees and reviews:
To access the Safety, Sustainability and Corporate Responsibility Committee Charter click here.
At the executive level, the AGL Executive Team builds sustainability considerations into business strategy and day-to-day operations.
Responsibility for AGL’s sustainability strategy lies within the Carbon and Sustainability team within the Corporate Affairs business unit. This team is responsible for developing sustainability strategy and policy, liasing with the business on these policies and reporting progress on sustainability issues.
A range of formal policies, plans and management systems govern AGL’s day-to-day operations:
Risk management - AGL integrates risk management practices into all business processes and operations to drive consistent, effective and accountable action, decision making and management practice. AGL’s fundamental, underlying risk principles are consistent with the Australian Standard for Risk Management AS/NZS 4360 and the COSO framework for Enterprise Risk Management. AGL’s risk management policy sets out the objectives and accountabilities for the management of risk within AGL such that it is structured, consistent and effective. To access AGL’s Risk Management Policy click here.
Key aspects of AGL’s approach to risk management are outlined in the Economic Performance section of this report.
Code of Conduct - AGL’s Code of Conduct sets out a number of overarching principles of ethical behaviour aligned with AGL’s core values, and applies to Directors, employees and contractors working on behalf of AGL.
The Code is administered by the AGL Ethics Panel. The responsibilities of the Ethics Panel include putting in place procedures for distribution of, and compliance with, the Code; investigation and reporting of any alleged breaches of the Code; and recommending to the Board any changes required to support the effectiveness of the Code.
The AGL Code of Conduct was reviewed and updated in April 2009. The new Code will be delivered to all employees during 2009/10. To access AGL’s Code of Conduct click here.
Health, Safety and Environmental Management (‘Life Guard’) – AGL’s Health, Safety and Environmental Management system, Life Guard, is based on the recognised standards AS/NZS/ISO 14001 (Environmental Management Systems) and AS/NZS 4801 (Occupational Health and Safety Systems). Life Guard sets the corporate standards and requirements for health, safety and environmental management for all aspects of our business. Life Guard committees monitor and drive performance improvement and compliance with Life Guard.
To access AGL’s Health, Safety and Environment Policy, click here.
Market Disclosure - AGL's Market Disclosure Policy outlines how we manage our continuous disclosure obligations and how we communicate with financial markets. As part of internal plans to give effect to the Market Disclosure Policy, a Market Disclosure Committee has been established. The Committee is responsible for ensuring that all AGL announcements are made in a timely fashion, contain material information as well as being objective and factual, and are clearly written to allow investors to assess the consequences of information on their investment decisions.
To access AGL’s Market Disclosure Policy, click here.
Privacy - AGL's Privacy Statement and companion internal document, the Privacy Policy, outline our responsibilities and commitments in relation to the privacy of customers, Shareholders, employees and others with whom we deal. Its principles are consistent with the National Privacy Principles, as documented in the Commonwealth's Privacy Act 1988.
To access AGL’s Privacy Statement, click here.
Legislative Compliance Policy - AGL also has a formal Legislative Compliance Policy and Legislative Compliance Plan. These documents cover legislative requirements, management responsibilities, training, reporting on compliance and provision for internal audit.
To access AGL’s Legislative Compliance Policy, click here.
AGL aims to provide governments with access to the right information so that the effects of energy market and greenhouse policy both on our business and on our customers are fully understood. AGL participates in the development of public policy by providing submissions (both directly and through industry associations), consulting with government and government departments, participating in government networking events and by speaking at government enquiries.
Copies of AGL’s submissions are publicly available on the relevant government department websites.
Price risk - Price risks exist for energy retailers where regulated prices do not reflect current energy costs. AGL actively manages regulatory price risks and participates in regulatory price reviews when they arise.
Energy Regulation – AGL maintains an efficient market and regulatory framework so that customers are not exposed to excessive costs.
Market reliability and price risk are related to how the National Electricity Market is working. This market will be affected by changes to government policy, particularly climate change policy. The Australian Energy Markets Commission (AEMC) is currently reviewing how the market will respond to these policy changes. AGL has provided a series of submissions to the AEMC. Submissions are located on the AEMC website.
AGL has also been engaged in reviewing the National Energy Customer Frameworks. This has been to facilitate national consistency and appropriate balance of customer protections. Submissions can be found on the Ministerial Council on Energy website.
Climate change policy – AGL contributed to a number of public policy discussions during 2008/09. The following submissions were made in response to issues raised by governments:
AGL’s submissions are available through government websites including the Department of Climate Change.
It is a requirement of AGL’s Code of Conduct that AGL will not make donations to any political party or to any individual in, or seeking to obtain, political office. The Code also requires AGL to adopt an even-handed approach to all mainstream political parties when paying to attend political functions.
During 2008/09, AGL paid subscription fees to Labor and Liberal political networking forums where these are established in each State where AGL operates. These comprise:
The total sum paid in subscription fees during 2008/09 was $28,240.
AGL is a member of the following industry associations:
AGL has representatives on the Boards of the Clean Energy Council, the Energy Retailers Association of Australia, the National Generators Forum and the Australian Financial Markets Association.
AGL works with these associations to provide common industry and business positions to governments on energy market and greenhouse policy issues.
